Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $12.40B
• Dividend Yield: 2.73%
• Average Volume (3M): 4.53M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.03
• Revenue Growth: 1.46%
• EPS Growth: -26.54%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Grocery Stores
• EPS (TTM): 0.46
• Shares Outstanding: 563,990,500
• 10 Day Avg. Volume: 5,628,185
• 30 Day Avg. Volume: 4,532,307
• PEG Ratio: -0.45
• Price to Book (P/B): 6.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.52
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: 1.67
• 1Y Price Target: $24.45
• Price Target Upside: 11.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: $24.00 ▲(9.44%Upside)

Albertsons Companies demonstrates solid financial performance, particularly in revenue growth and cash flow stability, which supports a strong financial position. However, technical indicators and earnings call sentiments reveal challenges such as high leverage, operational efficiency issues, and market pressures, which constrain the overall score.

Positive Factors

Business Performance

ACI’s strength in pharmaceutical and e-commerce sales, combined with its ability to further leverage its massive customer loyalty program, will continue to drive accelerating Business Performance trends.

Growth Initiatives

ACI will continue to drive growth through the ongoing investment of its cash flow in key growth initiatives, including enhanced digital and omnichannel capabilities combined with new store openings and upgrades.

Valuation

ACI may see valuation expansion from low levels as investors seek cheap, defensive stocks.

Negative Factors

Digital and Processes

ACI remains at a discount given it is behind in digital and centralizing of processes.

Investment Concerns

Concerns around an investment year proved to be correct, as EPS guidance fell short of the market bar.

Margin Pressure

Mix shift to eCommerce and Pharmacy continues to pressure margins for the time being.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. As of February 26, 2022, it operated 2,276 stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and 1,722 pharmacies, 1,317 in-store branded coffee shops, 402 adjacent fuel centers, 22 distribution centers, and 20 manufacturing facilities, as well as various digital platforms. The company was founded in 1860 and is headquartered in Boise, Idaho.

How the Company Makes Money

Albertsons Companies generates revenue through several key streams, primarily from the sale of groceries and pharmacy products. Its core revenue model is based on retail operations, where the company sells a wide array of products, including fresh produce, packaged foods, beverages, household goods, and health and beauty items. In addition to grocery sales, the company earns significant revenue from its in-store pharmacy services, which include prescription dispensing and health consultations. Albertsons also engages in strategic partnerships and loyalty programs, enhancing customer engagement and sales. The company's revenue model is supported by its extensive network of stores, robust supply chain, and strong brand recognition across its multiple banners.

Albertsons Companies Financial Statement Overview

Summary

Albertsons Companies demonstrates consistent revenue growth and strong cash flow performance, indicating effective management and operational efficiency. However, the high debt-to-equity ratio and declining EBIT and EBITDA margins present challenges in operational efficiency and financial leverage.

Income Statement

Albertsons Companies has demonstrated consistent revenue growth over the past few years, with a notable increase from $62.5 billion in 2020 to $79.2 billion in 2024. The gross profit margin has remained relatively stable, indicating effective cost management despite competitive pressures. Net profit margin has shown improvement, reflecting enhanced profitability. However, EBIT and EBITDA margins slightly declined in recent years, suggesting potential challenges in operational efficiency.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, indicating significant leverage which could be a concern in a high-interest rate environment. However, there has been improvement in stockholders' equity over the years, enhancing financial stability. The equity ratio has been relatively low due to high liabilities, suggesting a need for cautious financial management.

Cash Flow

Albertsons shows strong cash flow performance with positive free cash flow over the years, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio indicates robust cash generation relative to profit. The free cash flow growth rate has been positive, further supporting financial health and providing flexibility for future investments or debt reduction.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	80.39B	79.24B	77.65B	71.89B	69.69B
Gross Profit	22.26B	20.43B	21.76B	20.72B	20.41B
EBITDA	4.10B	4.54B	4.80B	4.89B	3.79B
Net Income	958.60M	1.30B	1.51B	1.62B	850.20M
Balance Sheet
Total Assets	26.76B	26.22B	26.17B	28.12B	26.60B
Cash, Cash Equivalents and Short-Term Investments	293.60M	188.70M	455.80M	2.90B	1.72B
Total Debt	14.18B	14.24B	14.96B	14.03B	14.47B
Total Liabilities	23.37B	23.47B	24.56B	25.10B	25.27B
Stockholders Equity	3.39B	2.75B	1.61B	3.02B	1.32B
Cash Flow
Free Cash Flow	749.40M	628.20M	700.00M	1.91B	2.27B
Operating Cash Flow	2.68B	2.66B	2.85B	3.51B	3.90B
Investing Cash Flow	-1.89B	-1.75B	-1.98B	-1.54B	-1.57B
Financing Cash Flow	-684.10M	-1.18B	-3.37B	-789.50M	-1.04B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Positive. The current price of 21.93 is above the 20-day moving average (MA) of 21.43, above the 50-day MA of 21.79, and above the 200-day MA of 20.15, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 57.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFM	75 Outperform	$15.65B	36.00	35.74%	―	15.51%	53.77%
ACI	71 Outperform	$12.40B	13.39	31.26%	2.73%	1.46%	-26.54%
KR	70 Outperform	$46.43B	19.09	24.06%	1.82%	-2.11%	25.03%
Sector *	68 Neutral	¥197.78B	21.08	8.29%	2.34%	4.99%	3.05%
WMK	68 Neutral	$2.03B	18.97	7.54%	1.80%	1.76%	6.01%
IMKTA	65 Neutral	$1.24B	20.48	4.00%	0.99%	-7.79%	-64.85%
GO	61 Neutral	$1.31B	79.51	1.43%	―	10.37%	-73.84%

Albertsons Companies Corporate Events

Albertsons Companies Announces CEO Vivek Sankaran’s Retirement

Albertsons Companies announced the retirement of CEO Vivek Sankaran, effective May 1, 2025, with Susan Morris, the current Executive Vice President and Chief Operations Officer, set to succeed him. This transition is part of a comprehensive succession plan, with Morris bringing nearly 40 years of industry experience to the role, aiming to continue the company’s growth and strategic initiatives, including the ‘Customers for Life’ strategy.